Environment SCM Dell

DELL and the environment, throughout Supply Chain Management and beyond…
Dell and the environment -

throughout supply chain
management and beyond…
Team A
SCM in ICT & Media Companies
“Leadership starts at home, which is why we are going carbon
neutral, but this should only be the beginning of building long-term
partnerships with customers, stakeholders, and suppliers of all sizes
to team up and make a difference for the Earth we all share.”
Michael Dell
Outline
• “Inside” Dell…
– Designing products
– Waste management
– Manufacturing and operations
– Transportation
– Facilities
• Throughout Supply Chain Management…
– SCM & Compliance Process
– Global Citizen Program
– Business Process Improvement
– Greenhouse Gas emissions
– Beyond social & environmental responsibility
Designing Products Waste Management Manufacturing & Op. Transportation Facilities
SCM & Compliance Process Global Citizen Program BPI GHG Beyond S&E responsibility
• “Designing products with the environment in

mind”
– Safe operation throughout product life cycle
– Extending product life span
– Reduce energy consumption
– Avoid environmentally hazardous materials, using parts
that can be recycled
– Set expectations of environmental aspects throughout
Dell's supply chain
• Waste management
– Continuously working through their supply chain to
reduce waste and packaging
• Fewer components…less volume…fewer shipments…less fuel
consumption…fewer emissions
– R3 initiative
• Reduce
• Reuse
• Recycle
• Manufacturing and operations

– Committed to fully integrating environmental
performance
– Strong focus on minimizing impact on the environment
– All products are made to order
– Only three days of inventory for most parts and
equipment…keeps the environmental impact of
warehousing to a minimum
• Transportation
– To reduce environmental impact, Dell focuses on…
• Geographic manufacturing (build products closer to customers)
• Reducing GHG emissions (shorter distances)
– “SmartWay” initiative
» Involves transportation companies
» best practices for fuel conservation
» Implementation of latest technologies
– Customer Delivery Notification (CDN) program
» The customer selects a delivery time helping to increase first-time
deliveries
– Using “LTL Direct”
» To reduce total miles traveled
» To reduce air transportation
» To reduce product damages
» …being more efficient
• Facilities
– 97.8% of Dell’s carbon emissions come from electricity
usage, so…
– Different operational initiatives…
• Power management program (power off during nights and
inactivity)
• Alternative office lightning
• Recycling and reuse (95%)
What specific environmentally

oriented programs are being
implemented by Dell, throughout its
supply chain?
• Supply Chain Management and Compliance

Process…
– Environmentally Sensitive Materials Elimination
– Product Content Restriction
– Compliance Verification Process
– Compliance Verification Audit Program

Process…
– Environmentally Sensitive Materials Elimination
• Directs its suppliers to restrict and/or eliminate
environmentally sensitive materials in the components and
products supplied to Dell
• Chemical Use Policy, periodic revisions of restricted
materials list

Process…
– Product Content Restriction
• Restricted Materials Guidance Document
• Robust compliance assurance processes to ensure Dell's
precautionary chemical use policies are met throughout the
entire supply chain

Process…
– Compliance Verification Process
• Certification and Standards of suppliers (ISO 14001 and
OHSAS 18001*)
• Training and Communication to suppliers regarding
environmental practices
• Reviews and Compliance…environmental requirements
reviews from top executives
• Correction and Enforcement…action plans when required or
end agreements with suppliers when fail
*Occupational Health and Safety Assessment Series


Process…
– Compliance Verification Audit Program
• Traditional audit to suppliers (quarterly)
• In-depth supplier survey, according to directive for parts and
products
• Supplier's Declaration of Conformity (SDoC)
• Dell’s Global Citizen Program…

– Aims to build a supply chain to meet the EICC*
social and environmental standards
– 4 phases
• Awareness (Tier 1 suppliers, 75 suppliers, 153 sites)
– Labour and environmental standards
– ISO 14001 and OHSAS 18001 certification
• Self-assesment (risk criteria, 60 suppliers, 105 sites)
• Verification (risk criteria, 15 suppliers, 44 sites)
– Improve business processes and take corrective actions
• Sustainability (Phase still being defined)
*Electronic Industry Code of Conduct

• Business Process Improvement (BPI)

– Similar to Six Sigma
– Team approach (Dell and supplier members)
– Manufacturing issues
• Quality, throughput, delivery and cost
– Creating best practices to share with Tier 1 suppliers
– Key to increase awareness of suppliers about
environmental impact from their operations
• Greenhouse Gas (GHG) emissions data

– Quarterly business reviews with suppliers
– Supplier’s volume can be affected if not complying
– Suppliers become more energy efficient…this cut
costs and reduce environmental impact
– Supply Chain Leadership Collaboration (SCLC),
giving supplier’s access to standard methodologies
• Beyond social and • Being an environmentally

environmental driven company, allows
responsibility… Dell to…
– lower inventories
– Permanent interaction with
customers and stakeholders – lower energy consumption
– reduce waste and use of
– Engagement and
resources
education of suppliers and
– reduce emissions
customers!
– increase impact in other
– Setting standards with organizations
suppliers outside the main
– reduce the use of
business (e.g. Forestry, environmentally sensitive
recycling and green materials, and overall…
computing) – reduce costs that are
passed along customers!
• Michael Dell:
– “efficiency eliminates waste” - align with the principles of the direct
business model - “efficiency delivers customer value”
– “We believe in winning at Dell. And not just in terms of customer

service and technology, but also in terms of social and
environmental stewardship.”
• Martin Garvin, Dell’s chief procurement officer:

– “Our global supply chain is integral to Dell’s long-term commitment
to become the greenest technology company on earth. This means
partnering with suppliers, customers, and stakeholders to drive
meaningful and positive change.”
Thank you very much!
Q&A…
Sources
• http://amrresearch.com/Content/View.asp?pmillid=21021
• www.dell.com

Environment SCM Dell

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Environment SCM Dell

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Verfügbare Formate

DELL and the environment, throughout Supply Chain Management and beyond…

Dell and the environment -

• “Designing products with the environment in

• Manufacturing and operations

What specific environmentally

• Supply Chain Management and Compliance

• Supply Chain Management and Compliance

• Supply Chain Management and Compliance

• Supply Chain Management and Compliance

*Occupational Health and Safety Assessment Series

• Supply Chain Management and Compliance

• Dell’s Global Citizen Program…

*Electronic Industry Code of Conduct

• Business Process Improvement (BPI)

• Greenhouse Gas (GHG) emissions data

• Beyond social and • Being an environmentally

– “We believe in winning at Dell. And not just in terms of customer

• Martin Garvin, Dell’s chief procurement officer:

Thank you very much!

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